In the rush to reach your goals in the search engines AdWords management, some companies often equate ad position with success. Quite simply, they fall for belief that having a higher ad position means that they will necessarily be a little more profitable. But that’s possibly not so!
First, let’s explain whatever we mean by the phrase “ad position”. Ad position means the rank of your ad someone searches in Google. As an illustration, let’s claim that someone searches about the phrase “best loans”. Google will work its best provide you with the most relevant ads as well as the most relevant organic (or free) listings for that search query.
Paid ads will normally be at the really top and off on the right-hand side. Let’s say you will find seven paid ads and all are listed on the right-hand side. If my company’s ad is in the top, then my ad is “ad position #1.” If my ad were 5th through the top, then that will be “ad position #5.”
Now to the majority people and a lot of inexperienced in pay per click advertising management, it would seem how the higher ad positions would be the most coveted…in fact, the greater the ad, the better clicks, right? Absolutely. Chance are that (things being equal) should your ad is high in the page, you will get more clicks. But those clicks don’t necessarily translate to more sales. In reality, often times those clicks can end up costing serious cash than you feel. Here’s why…
You must take into account the buying stage that a customer is if they are clicking ads. True, they might click your ad first when you are near the top of the page, but the typical potential buyer is probably with the “research stage” when this occurs where they click on the ads closest to the peak from the page.
Research has proven that many times the further down a page a searcher goes, the closer the searcher is always to making a buying decision or even the more desperate the possibility customer is to discover the right solution to the situation.
Let’s explore a scenario and say with regard to even numbers how the top ad position for that keyword “divorce attorneys” can be acquired for $10, but to be position #6 on the page only costs you $4 per click. Now, let’s assume that the most notable position gets 30 clicks away from one hundred searches, only 5 of the produce a lead since the searcher will not be finished “researching”, as they are hitting every one of the ads to obtain a sense of the advertiser.
So ad position #6 gets 15 clicks, but those clicks result in 5 leads. Who wins? Well, ad position #1 paid $300 (30 clicks X $10) due to its clicks and got 5 leads. That is a price of $60 per lead ($300 cost / 5 leads). Ad position #6 cost the advertiser $60 (15 clicks X $4) and also, since they obtained 5 leads, those leads only cost $12 per lead ($60 cost / 5 leads).
In this particular scenario, ad position #6 won, but hold on a minute! Imagine if position #6 only got 4 leads. That changes the particular cost per cause $15, but if the average conversion led to a sale of $one thousand in legal fees and also the conversion rate was say 50%, then though ad position #1 cost a lot more per lead, it can be ultimately more clickmmarketing than position #6.
Sound confusing? It will because it IS confusing and normally requires expensive 3rd party software to check properly. When you are not testing or your account is now being managed by someone who hasn’t asked the right questions, then your campaign may be in real trouble.
Really the only option to finding out what is right for you would be to test, test, and test again. Professional AdWords management always starts with good niche research and ends with proper testing. Though, in fact, top AdWords managers never stop testing the things that work with regard to their clients.